So far, the 20 wealthiest tech billionaires, including Mark Zuckerberg, Bill Gates, and Larry Ellison, lost almost half a trillion dollars ($480 billion) this year due to the stock market’s recent steep decline.
To put this in perspective, the value of the wealth lost is greater than all but seven companies listed on the S&P 500.
Zuckerberg’s wealth decreased by $11.2 billion after Facebook’s earnings report failed to meet investors’ expectations.
This caused Meta Platforms Inc.’s stock values to drop by a quarter. Additionally, the company’s revenue growth has been slower than usual for two consecutive quarters.
While the beginning of the pandemic was a boon for tech companies, they’re now facing inflation and interest rate hikes. In response, many firms are cutting costs by reducing staff and terminating employees.
As a result of these trends in the industry, the Nasdaq Composite has dropped by 29%.
Furthermore, the wealthiest man in the world, Elon Musk, and his rival, Jeff Bezos, have both seen significant wealth erosion this year, each losing over $58 billion.
Alphabet Inc. co-founders Larry Page and Sergey Brin, two of the world’s wealthiest people, have also seen their net worths take a hit this year. After Alphabet reported its first annual drop in YouTube ad sales, they lost over $40 billion in paper wealth.
The only woman among the top 20 richest tech moguls, MacKenzie Scott, lost over $29 billion in 2022. However, some of that loss can be traced to her donations to charity organizations.
On the other hand, two tech billionaires saw their wealth increase in 2022. Zhang Yiming, the founder of ByteDance Ltd., added $10.4 billion to his fortune, and Robert Pera, the founder of Ubiquiti Inc., saw his go up by $1.3 billion.